E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 3, 2016 Forecast

June E-mini Russell 2000 Index futures are trading lower. Traders are reacting to a bearish Chinese manufacturing report, a stronger Japanese Yen and a weaker U.S. Dollar.

The main trend is up according to the daily swing chart. The trend will turn down on a trade through the swing bottom at 1117.60.

The main range is 1083.50 to 1154.40. Its retracement zone at 1118.90 to 1110.50 is the primary downside target.

The short-term range is 1154.40 to 1120.10. Its retracement zone at 1137.30 to 1141.30 is the primary upside target. It stopped the index yesterday and earlier today.

Based on the current price at 1126.80, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 1130.40.

A sustained move under 1130.40 will indicate the presence of sellers. The first target is an uptrending angle at 1119.50. This is followed by the 50% level at 1118.90 and the main bottom at 1117.60.

The main bottom at 1117.60 is a possible trigger point for an acceleration to the downside with the Fib level at 1110.50 the next target, followed by the uptrending angle at 1101.50.

A sustained move over 1130.40 will signal the presence of buyers. This could create enough upside momentum to challenge the short-term 50% level at 1157.30, the short-term Fib level at 1141.30 and the short-term downtrending angle at 1142.40.

The angle at 1142.40 is the trigger point for an acceleration into 1148.40.

Watch the price action and read the order flow at 1130.40. Trader reaction to this angle will tell us if buyers are returning or if sellers are gaining control.